The Scope and Effectiveness of Support for the Innovative Potential of Small Business in the European Union

Marek Matejun

Abstract—
Innovativeness is the foundation of competitiveness and the competitive advantage of micro, small and medium-sized enterprises (SMEs). It is determined by the innovative potential that expresses a company's ability to create and innovate. In the process of the development of this potential, enterprises can use external support offered by small business environment institutions in the framework of the integrated actions taken by the Member States of the European Union to promote entrepreneurship development. Taking this into account, the paper aims at the assessment of the scope and effectiveness of SMEs' use of external support for their innovative potential. Two research hypotheses were adopted in the paper. The author's own survey conducted on a sample of 1,741 SMEs in the European Union was devoted to the aim of the paper and the verification of the adopted hypotheses. The results indicate that the analyzed companies use external support to a very small degree. Despite the small scope of its use, this type of support significantly affects the level of innovative potential of small business. Non-repayable financial support derived from various aid funds of the European Union, as well as technological support, supplementing resource shortages of small business in the sphere of technology and know-how, are characterized by the relatively highest effectiveness.

Cite:
Marek Matejun, "
The Scope and Effectiveness of Support for the Innovative Potential of Small Business in the European Union," Journal of Economics, Business and Management vol. 5, no. 8, pp.
290-297, 2017.